The concept of the “Base of the Pyramid” (BoP) refers to nearly 4 billion people that live with less than $1,500 annually, which are predominately present in developing countries (xxxx). The popultion that form part of the BoP live with an exceptionally low day-to-day wage, and most often are deprived of basic services and utilities (xxxxx). These issues have traditionally been addressed by developed countries that donate aid for development, international organizations and multinational companies (MNCs) that aid in development through their “corporate Social Responsibility” (CSR) activities.
The BoP concept is based on the idea that there is a fortune at the bottom of the economic pyramid of consumers (prahaald and hart 2002) which has attracted …show more content…
The top of the pyramid (tier 1) consist of 75-100 million consumers that have an annual income of $20,000 or more, it consist of middle- and upper-income people in developed countries and also of a few rich elites from developing world. The middle of the pyramid (tier 2&3) consist of 1,500-1,750 million consumers that have annual income between $1,500-$20,000 which consist of poor costumers in developed nations and the rising middle classes in developing countries. Lastly the bottom of the pyramid “BoP” which is comprised of 4,000 million consumers, their annual per capita income is less than $1,500 per year. More than 1 billion people of the fourth tier, approximately one-sixth of world population, per capita income is less than $1 per …show more content…
Due that the traditional methods of product development are not suitable at BoP, co-creation will be specially focused in product development since the traditional product development in developed markets are not suitable in the BoP. (London 2007), details the importance to generate bottom up development involving the local communities in order to understand, leverage, build and respond to the local challenges and needs. The co-creation of the market entry strategy can involve a broad selection of stakeholders with local development capacity. Furthermore, it is possible to co-create markets by developing demand of the co-created solution by the way of local training and building awareness (Kennedy and Novogratz, 2011; Ricart et al., 2006; Simanis and Hart,
The BoP concept is based on the idea that there is a fortune at the bottom of the economic pyramid of consumers (prahaald and hart 2002) which has attracted …show more content…
The top of the pyramid (tier 1) consist of 75-100 million consumers that have an annual income of $20,000 or more, it consist of middle- and upper-income people in developed countries and also of a few rich elites from developing world. The middle of the pyramid (tier 2&3) consist of 1,500-1,750 million consumers that have annual income between $1,500-$20,000 which consist of poor costumers in developed nations and the rising middle classes in developing countries. Lastly the bottom of the pyramid “BoP” which is comprised of 4,000 million consumers, their annual per capita income is less than $1,500 per year. More than 1 billion people of the fourth tier, approximately one-sixth of world population, per capita income is less than $1 per …show more content…
Due that the traditional methods of product development are not suitable at BoP, co-creation will be specially focused in product development since the traditional product development in developed markets are not suitable in the BoP. (London 2007), details the importance to generate bottom up development involving the local communities in order to understand, leverage, build and respond to the local challenges and needs. The co-creation of the market entry strategy can involve a broad selection of stakeholders with local development capacity. Furthermore, it is possible to co-create markets by developing demand of the co-created solution by the way of local training and building awareness (Kennedy and Novogratz, 2011; Ricart et al., 2006; Simanis and Hart,